If you are involved in or wish to set up a not for profit organisation with aims that are charitable in nature, you may wish to consider registering as a charity in order to benefit from a charity's improved tax status.
To be a charity, an organisation must be established for exclusively charitable purposes. Charitable purposes are those that fall within the description of purposes capable of being charitable set out in the Charities Act 2011 and are for the public benefit.Charities in England and Wales are regulated by the Charity Commission. Not all charities can be registered with the Charity Commission. Some charities are exempt or excepted from registration; others are too small (a gross annual income of less than £5,000). Legal Clarity can advise you of your suitability for registration.
The registration process can be complicated but with clear guidance it can be achieved in as short a time as possible by supplying all the information that the Charity Commission requires at the outset.
Detailed Consultation - with one of our solicitors to provide advice and to take detailed instructions.
Completion of all necessary forms.
Guidance through the registration process including help with any additional enquiries that may be raised by the Charities Commission.
Further guidance for members of your new charitable company, if needed.
A charity can also be a limited company but these are examined in detail by the Charity Commission to ensure that the Articles of Association (the constitution of the company) comply with their requirements. In order to avoid any delays it is easier to form such a company with a set of Articles of Association in a form approved by the Charity Commission and, if required, Legal Clarity can help by forming such a company for you.
Every charity needs a governing document which sets out the charity's purposes, how its income can be spent and how it is run. There are three main types of governing document: constitution or rules; trust deed; and articles of association.
The type of governing document required will depend on the type of entity you choose for your organisation. The three main types are: unincorporated association; trust; and company limited by guarantee.
Legal Clarity can help you choose the most suitable form of entity for your organisation and can draft the appropriate governing document. If you choose a company limited by guarantee, we can form this for you for an additional fee.